According to Financial Express, Harley Davidson is already upgrading their four month old assembly plant in India that currently builds motorcycles from knock down kits shipped from the US. How they are gonna upgrade? The factory will become a "mother plant" Yes, the plant will be cranking complete motorcycles from scratch using components supplied from locals. That means the bike is not gonna be American bike at all. The main reason Harley decided to do this is the Indian tariffs. It is 110% on imported bikes, on those assembled from kits it's 60%. If the Harley cruisers are completely built in India, there will be no import tariff at all, making them quite bit cheaper when sold in those markets. It is said that the plant is aimed at serving all of the Asian market, but if this is kept up, Harley might be next Royal Enfield.
The company has asked its global vendors in the US and Thailand to set up manufacturing units in Bawal. It has also given expressions of interest to Indian component makers for supply of vehicle parts to its Haryana unit, which would commence its operations in mid-2011,
Labor in India is real cheap after all... Some might start calling Harley Curry burner real soon. Curry goes real well with rice.
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